Mr. Karia Samaroo reports

XTAO COMPLETES VALIDATOR UPGRADE TO SUPPORT BITTENSOR PROTOCOL UPDATE

XTAO Inc. has successfully completed a validator upgrade undertaken in connection with Root Reborn, a protocol upgrade to the Bittensor network released earlier this month. The upgrade ensures the continued performance and reliability of XTAO's validator operations under the network's updated architecture.

Root Reborn refines the mechanism by which validators support the subnets that comprise the Bittensor network, strengthening the alignment between validator participation and subnet performance. XTAO implemented the corresponding changes to its validator infrastructure without interruption to its operations, and its validator remains among the leading validators on the network.

In the Bittensor ecosystem, validators serve as the essential stewards of network integrity, acting as the primary mechanism for the fair distribution of TAO emissions. Bittensor validators perform a complex evaluative function, continuously scoring the quality of intelligence produced by miners across the network's subnets through the Yuma Consensus, ensuring that incentives are directed toward the most innovative and accurate contributors.

Bittensor continues to advance a peer-to-peer, permissionless marketplace for artificial intelligence, in which specialized models compete and collaborate under a meritocratic incentive structure. Continuing protocol development of the kind reflected in Root Reborn reinforces the network's foundations and supports its continued maturation as infrastructure for decentralized AI. XTAO remains committed to maintaining validator operations that support the network through each stage of its development.

About XTAO Inc.

XTAO is a technology company building infrastructure for the Bittensor ecosystem. XTAO is committed to advancing Bittensor and decentralized AI (artificial intelligence) through building infrastructure and making strategic investments. XTAO is headquartered in the Cayman Islands and is publicly listed on the TSX Venture Exchange under the ticker XTAO.U.

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